Oklahoma Bankruptcy

The state of Oklahoma is divided into three bankruptcy districts: Oklahoma Eastern Bankruptcy Court, Oklahoma Northern Bankruptcy Court and Oklahoma Western Bankruptcy Court. These courts serve the entire state of Oklahoma.

Automatic Stay (Bankruptcy Protection) under Bankruptcy Reform Act
Bankruptcy offers debtors a fresh start because bankruptcy protects consumers against lawsuit from creditors. The protection starts after you attend the mandatory pre-bankruptcy counseling session and file your case with the Court. Until that time, creditors can still try to collect on your credit card debt. And, you are not protected from Oklahoma foreclosure proceedings.

However, according to Michael J. Rose, P.C., under the Bankruptcy Reform Act that was passed in 2005, if you had a Chapter 13 case dismissed within the prior year, the automatic stay terminates after 30 days unless the Court extends it for cause. If you've had 2 or more cases dismissed, the automatic stay does not go into effect at all unless the Court orders it for cause. The automatic stay is now limited with respect to domestic relations cases, landlords, taxing authorities, and collection of child support.

Avoiding Bankruptcy
Oklahoma chapter 7 bankruptcy laws and Oklahoma chapter 13 bankruptcy laws have changed the landscape of filing for bankruptcy. It is now more complicated and expensive to file for chapter 7 and chapter 13 bankruptcies. But, there are two aggressive, but effective ways of avoiding bankruptcy: loan modification and debt settlement. A debt settlement involves getting your creditors to agree to take less than what you owe as full payment for the debt. A loan modification involves negotiating with your mortgage lender for rates and terms that allow you to stay in the loan. Oklahoma City bankruptcy lawyers, Tulsa bankruptcy attorneys and other Oklahoma bankruptcy attorneys can explain your options to you and help you select the best one for your situation.